Pace Digitek
Book Building issueMainboardBSE₹819 Cr issue
+3.58%
Listing gain over issue price
Issue size
₹819 Cr
1 lot at cut-off
₹14,892
Lot size
68shares
Open
26 Sep 2025
Close
30 Sep 2025
Allotment
01 Oct 2025
Listing
06 Oct 2025
Listing performance
Issue price
₹219
Listed at
₹226.85
Listing-day close
₹217.99
Latest price
₹165.42
Close on 12 Oct 2026
Listing gain
+3.58%
Return since issue
-24.47%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Sep 2025 – 30 Sep 2025
- Listing date
- 06 Oct 2025
- Face value
- ₹1 per share
- Issue price
- ₹219 per share
- Lot size
- 68 shares
- Issue type
- Book Building issue
- Listing at
- BSE
- Total issue size
- ₹819 Cr
- Market cap at offer price
- ₹4,727 Cr
- Promoter holding
- 84.07% → 69.50% pre-issue → post-issue
- ISIN
- INE0S3G01027
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- Plot # V 12, Industrial Estate, Kumbalgodu, Mysore Highway, Karnataka
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,11,93,807 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 68 shares per lot, in multiples, at ₹219
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 68 | ₹14,892 |
| Retail (max) | 13 | 884 | ₹1,93,596 |
| S-HNI (min) | 14 | 952 | ₹2,08,488 |
| S-HNI (max) | 67 | 4,556 | ₹9,97,764 |
| B-HNI (min) | 68 | 4,624 | ₹10,12,656 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
1,11,93,807
Anchor portion
₹245 Cr
at ₹219 per share
Valuation and performance
Valuation at offer price
₹219 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 15.64 | 12.93 |
| P/E (×) | 14.00 | 16.94 |
| Price to book (×) | 3.07 | — |
| Market cap | — | ₹4,727 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 22.87%
- ROCE
- 37.89%
- Debt / equity
- 0.13
- PAT margin
- 11.44%
- EBITDA margin
- 20.71%
- NAV per share
- ₹71.24
- Price to book
- 3.07
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Pace Digitek
Pace Digitek Limited, originally incorporated as Pace Power Systems Private Limited in 2007, has evolved from an electrical equipment manufacturer for the telecom industry into a comprehensive telecom infrastructure solutions provider. The company offers turnkey solutions encompassing manufacturing, installation, commissioning, and operation & maintenance services. It generates revenue from three primary verticals: telecommunications (including telecom towers and optical fibre cables), energy (solar and battery energy storage solutions), and information and communication technology (ICT). The company has established operational presence across multiple Indian states including Maharashtra, Gujarat, Karnataka, Andhra Pradesh, Jammu and Kashmir, and northeastern states, with additional operations in Myanmar and Africa. Pace Digitek operates through 6 subsidiaries, including Lineage Power Private Limited and Pace Renewable Energies Private Limited, which focus on power systems and renewable energy projects respectively.
Company Analysis
from RHPPace Digitek Limited is a telecom infrastructure solutions provider specializing in telecom tower infrastructure, optical fibre cables, and energy solutions across telecommunications, energy, and ICT sectors.
Pace Digitek Limited, originally incorporated as Pace Power Systems Private Limited in 2007, has evolved from an electrical equipment manufacturer for the telecom industry into a comprehensive telecom infrastructure solutions provider. The company offers turnkey solutions encompassing manufacturing, installation, commissioning, and operation & maintenance services. It generates revenue from three primary verticals: telecommunications (including telecom towers and optical fibre cables), energy (solar and battery energy storage solutions), and information and communication technology (ICT). The company has established operational presence across multiple Indian states including Maharashtra, Gujarat, Karnataka, Andhra Pradesh, Jammu and Kashmir, and northeastern states, with additional operations in Myanmar and Africa. Pace Digitek operates through 6 subsidiaries, including Lineage Power Private Limited and Pace Renewable Energies Private Limited, which focus on power systems and renewable energy projects respectively.
Telecom infrastructureOptical fibre cablesSolar energyBattery energy storage systemsInformation and communication technology (ICT)Rural electrification
Objects of the Issue
- Funding capital expenditure requirement for investment in our Subsidiary, Pace Renewable Energies Private Limited, for setting up battery energy storage systems (BESS) for a project awarded by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) ₹6,300.00 million p.22
- General corporate purposes p.23
- Funding investment in subsidiary Pace Renewable Energies Private Limited for setting up battery energy storage systems (BESS) for a project awarded by Maharashtra State Electricity Distribution Company Limited ₹6,300.00 million p.62
- Funding capital expenditure requirement for investment in our Subsidiary, Pace Renewable Energies Private Limited, for setting up battery energy storage systems (BESS) for a project awarded by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) 6,300.00 million p.148
- General corporate purposes [●] p.148
- Investment in our Subsidiary, Pace Renewable Energies Private Limited, for setting up battery energy storage systems for a project awarded by the Maharashtra State Electricity Distribution Company Limited ₹6,300.00 million p.291
- Not specified in this document section
Issue Structure
- Total Issue
- Up to ₹8,191.48 million
- Fresh Issue
- Up to [●] Equity Shares of face value of ₹2 each, aggregating up to ₹8,191.48 million
- Offer for Sale
- Not Applicable
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹2 each
Business Model
Pace Digitek generates revenue through three business models: (1) Products—manufacturing and sale of electrical equipment including passive infrastructure equipment, lithium-ion battery systems, and telecom power equipment; (2) Projects—undertaking turnkey projects for telecom tower installation, optical fibre cable laying, solar solarization, and battery energy storage systems, with revenue from projects constituting 97.43% of total revenue in Fiscal 2025; (3) Services—operation and maintenance (O&M) of installed infrastructure and systems. The company derives revenue from both public sector customers (96.17% in Fiscal 2025) and private sector customers through competitive bidding for government contracts and direct engagements.
Business Segments
Supply and erection of ground-based and roof-top telecom towers, optical fibre cable laying, infrastructure as a service provider for supply and installation of infrastructure equipment, operation and maintenance of telecom infrastructure
Solar power generating system installation including solar panels and batteries, battery energy storage systems (BESS), solarization of telecom towers, operation and maintenance of renewable energy installations, turnkey projects for renewable energy sector
Information and communication technology solutions including surveillance and education ICT systems, business consultation, fibre restoration and painting
Manufacturing telecom infrastructure equipment, optical fiber cables, telecom power equipment and lithium-ion battery systems
Battery energy storage systems (BESS) deployment and operations
Manufacturing and supply of Switch Mode Power Supply (SMPS) units and Charge Control Units (CCUs) for telecom towers and solarization projects
Engineering, procurement, and construction services for telecom tower installation, optical fibre network deployment, and battery energy storage systems
Manufacturing and deployment of lithium-ion battery energy storage systems for grid stabilization and renewable energy applications
Long-term operations and maintenance services for installed telecom and renewable energy infrastructure
Analysis of wireless and wireline customers in India, rural vs urban split, tele-density trends FY14-24, and projections to FY28
Ground-based towers (GBT), roof-top towers (RTT), and ground-based masts (GBM) provision for telecom infrastructure; includes passive infrastructure like shelters, power systems, batteries, DG sets, air-conditioning
Supply of passive infrastructure (towers, shelters, power equipment, battery backup, DG sets, AC, fire extinguishers) to telecom operators
Maintenance services for telecom towers and related equipment including DG sets, air-conditioners, electrical equipment
Engineering, procurement, and construction services for optical fibre cable networks; deployment and system integration across telecom, defence, railways, smart cities, IT sectors
Solar power generation through photovoltaic systems and concentrated solar power; utility-scale, open-access, rooftop installations; capacity additions through competitive bidding, state schemes, PSU programs
Small-scale solar PV installations on roofs of buildings for residential, commercial, and industrial consumers; may or may not be grid-connected
Government-led programs providing electricity connections to unelectrified households in rural areas through distribution infrastructure projects and off-grid solutions
Electrochemical devices storing and discharging energy from the grid; includes lithium-ion, lead-acid, flow batteries, and sodium-sulphur batteries for grid stability and renewable energy integration
Manufacturing and deployment of lithium-ion batteries for electric vehicles, consumer electronics, and grid-scale energy storage applications
Provides end-to-end integrated solutions in telecom tower infrastructure and optical fibre cables through product manufacturing of equipments for telecom industry, providing O&M services for telecom towers and annual maintenance of OFC, and undertaking turnkey projects including erection of towers network and OFC network
Undertakes solar energy projects on a 'build, own and operate' model, solarization of telecom towers (supply of solar modules with lithium-ion batteries and related equipment, installation, commissioning and O&M), BESS projects in standalone or coupled modes on BOO and EPC models, rural electrification projects on EPC model, and manufactures lithium-ion battery systems and BESS
Offers customized surveillance systems, smart classrooms and smart kiosks for agricultural initiatives to the ICT sector
Execution of telecommunications and energy infrastructure projects including solar power plants and maintenance services
Development and maintenance of renewable energy projects, particularly solar power plants
Development and management of telecommunications infrastructure, digital infrastructure projects
Telecom towers, transmission line towers survey, tower accessories, supply of materials, design, erection, testing and commissioning services
Generation of power from renewable energy sources (solar, rooftop solar projects), operation and maintenance of solar power plants as IPP and CPP, related ancillary services
Various services and projects not classified under Telecom or Energy
Supply and erection of ground based telecom towers, infrastructure as a service provider for supply, installation of infrastructure equipments and operation and maintenance services for telecommunications infrastructure
Solar energy projects, rural electrification, and battery energy storage systems (BESS) manufacturing
Business consultation and fibre restoration and painting
SWOT Analysis
Strengths
- • Long-standing customer relationships with marquee telecom and state-owned entities(p.43)
- • Diversified revenue verticals across telecom, energy, and ICT sectors(p.21)
- • Established multi-state operational presence and geographic expansion(p.21)
- • Quality certifications and accreditations demonstrating compliance standards(p.51)
- • Significant growth trajectory with EBITDA growth of 19.21% and revenue at ₹24,387.80 million in FY2025(p.34)
- • Strong revenue growth and profitability trajectory(p.64)
- • Superior EBITDA margin expansion(p.73)
- • High return on equity and capital efficiency(p.64)
- • Strong liquidity position(p.73)
- • Improved debt management(p.64)
- • Operational scale with telecom infrastructure assets(p.65)
- • Long-standing presence in renewable energy and telecom infrastructure with expanding portfolio(p.151)
- • Recent entry into battery energy storage systems (BESS) manufacturing through subsidiary(p.151)
- • Award of major BESS project from Maharashtra State Electricity Distribution Company(p.149)
- • Multiple manufacturing facilities with ISO certifications supporting operational efficiency(p.172)
- • Vast untapped customer base in rural areas with growing tele-density(p.199)
- • Strong data user growth driven by affordability and device availability(p.200)
- • Projected increase in wireless internet penetration supporting revenue growth(p.200)
- • Rising 5G adoption with affordable device options(p.202)
- • Strong government support through regulatory reforms and capital allocation(p.217)
- • End-to-end integrated telecom infrastructure solutions with manufacturing, EPC, O&M capabilities(p.284)
- • Strong financial performance with 120% revenue CAGR (FY23-25) and 311% PAT CAGR(p.283)
- • Diverse, large order book (₹76.3 bn) across verticals with 97.8% from public sector clients(p.287)
- • Experienced technocrat promoter with 20+ years industry experience and qualified R&D team(p.288)
- • Advanced manufacturing facilities with 200,000 sq ft capacity and BESS production of 5 GWh p.a.(p.291)
- • Strong long-term customer relationships averaging 10 years; top 10 customers account for 96% of revenue(p.283)
- • ROCE of 37.89% and ROE of 23.09% (FY25), demonstrating capital efficiency(p.289)
- • Experienced management with 20+ years in telecom and energy sectors(p.338)
- • Established board with independent directors holding senior regulatory and industry positions(p.337)
- • Strong financial position with significant profit growth(p.387)
- • Subsidiaries without conflicts of interest with key suppliers and lessors(p.333)
- • Revenue from operations substantially increased(p.387)
Weaknesses
- • Extreme customer concentration with top 10 customers representing 96.25% of FY2025 revenue(p.43)
- • High dependence on government/public sector customers (96.17% of FY2025 revenue)(p.43)
- • Significant vendor concentration with top 10 vendors representing 39.70% of material costs in FY2025(p.49)
- • High trade receivables burden representing 75.58% of FY2025 revenue with 218 debtor days(p.53)
- • Significant warranty liabilities with ₹380.70 million in FY2025 (up from ₹273.23 million in FY2024)(p.51)
- • Poor manufacturing capacity utilization with passive equipment at 38.69% and battery at 15.32% in FY2025(p.55)
- • Negative operating cash flow of ₹1,758.86 million in FY2025 and negative investing cash flows in FY2024(p.52)
- • High employee attrition of 69.80% in FY2024 (though improved to 15.59% in FY2025)(p.56)
- • Unaudited financial statements for Group Company Qogno Digital Infrastructure Private Limited(p.56)
- • High employee attrition due to strategic shift(p.59)
- • History of statutory compliance delays and penalties(p.59)
- • Past non-compliance with Companies Act provisions(p.60)
- • Delayed and outstanding Form FC-GPR filings with regulatory penalties(p.61)
- • Loss-making subsidiary requiring capital funding(p.62)
- • Significant outstanding litigation(p.72)
- • Substantial contingent liabilities(p.80)
- • Rising related party transaction exposure(p.67)
- • Significant debt burden(p.71)
- • Outstanding dues to large creditor base(p.81)
- • Dependence on a few key technical and managerial personnel(p.67)
- • Delayed and incomplete Form FC-GPR filings with RBI for foreign investor share allotments(p.136)
- • High concentration of shareholding among four promoter family members(p.139)
- • Significant debt requirements for project funding yet to be fully arranged(p.151)
- • Pledge of equity shares by one shareholder creating encumbrance risk(p.137)
- • High capital intensity requiring sustained investment(p.206)
- • Consolidated market with limited independent operators facing intense competition(p.207)
- • Dependence on a limited number of telecom customers for tower and EPC demand(p.214)
- • High cost of ground-based towers limiting deployment flexibility(p.209)
- • High customer concentration with top 3 customers representing 89% of FY25 revenue(p.283)
- • Significant reliance on telecom vertical (94.2% of FY25 revenue), limiting diversification(p.282)
- • Low manufacturing capacity utilization: 38.69% (Facility 1) and 15.32% (Facility 2) in FY25(p.289)
- • Declining revenue in core Telecom segment (flat at ₹23 bn FY24-25) despite strong BESS orders(p.282)
- • Energy vertical is nascent (5.6% of revenue) with BESS orders yet to materialize in revenue(p.282)
- • Fixed assets register not maintained, preventing full asset verification(p.375)
- • Significant discrepancies between quarterly bank submissions and books of accounts(p.375)
- • No internal audit system established despite legal requirement(p.379)
- • Unspent CSR amounts not transferred to prescribed fund(p.379)
- • High debt burden with significant borrowings(p.389)
- • Concentrated promoter shareholding of 84.07%(p.356)
Opportunities
- • Expansion of battery energy storage systems (BESS) with ₹6,300 million investment planned(p.22)
- • Large order book of ₹76,336.17 million providing revenue visibility(p.44)
- • Deepening existing products and services offerings and expanding geographical reach(p.51)
- • Growth in renewable energy vertical with energy segment revenue increasing to 5.59% of total in FY2025(p.46)
- • Expansion of battery energy storage systems (BESS) capacity(p.62)
- • Strategic shift toward higher-margin EPC projects(p.59)
- • India's robust GDP growth and rising per capita income driving infrastructure spending(p.191)
- • Rapid urbanization creating demand for telecommunications infrastructure(p.193)
- • Government push toward renewable energy and battery storage systems(p.152)
- • Global transition to 5G networks requiring expanded telecom tower and infrastructure deployment(p.197)
- • Growing demand for energy storage solutions as countries transition to renewable energy(p.197)
- • Expansion into satellite communications for underserved rural areas(p.202)
- • 5G fixed wireless access to provide broadband in underserved regions(p.202)
- • Government investment in optical fibre infrastructure through BharatNet and Digital Highways(p.218)
- • Large-scale fiberisation targets supporting passive infrastructure demand(p.219)
- • Rising tower demand from 4G/5G expansion and network densification(p.209)
- • BESS market growth: 38.5 GW/201.5 GWh capacity additions targeted 2027-32 with government VGF support(p.291)
- • Government push toward 50% renewable energy by 2030; India renewable capacity to reach 350+ GW(p.291)
- • Telecom infrastructure capex expansion: passive infra market ₹2,000-2,100 bn (FY23-28) at 12.5-13.5% CAGR(p.284)
- • Significant awarded BESS pipeline: ₹24.7 bn order for Maharashtra BESS project (2 GW/4 GWh)(p.287)
- • Deepen O&M services and expand geographically into Kenya, Africa, and new telecom segments (KAVACH)(p.292)
- • Recent BESS manufacturing commencement with 5 GWh capacity and UL/IEC certifications; positioned for scale(p.291)
- • Expansion into international markets through existing subsidiaries(p.334)
- • Growth potential in energy sector operations(p.352)
- • Diversification across telecommunications infrastructure and energy(p.338)
Threats
- • Over-reliance on telecom sector with 94.22% of revenue dependent on telecom industry downturn risk(p.45)
- • High capital intensity of telecom sector with capex requirements of 25-30% of revenue limiting growth(p.46)
- • Geographic revenue concentration with 46.05% from Western region (Maharashtra alone 45.69%) exposing to regional risks(p.46)
- • Competitive tender-based bidding process with contracts awarded to lowest bidder creating margin pressure(p.45)
- • Risk of government policy changes, budget allocation cuts, or scaled back government initiatives(p.45)
- • Raw material supply disruption risk from concentrated vendor base(p.49)
- • Customer payment delays creating working capital pressure with 145 working capital days in FY2025(p.52)
- • Intense competition from larger listed peers with superior resources(p.63)
- • Concentration risk in single manufacturing location(p.77)
- • Significant dependence on third-party logistics providers(p.75)
- • Risks from machinery breakdown and technological obsolescence(p.75)
- • Regulatory and compliance risks(p.61)
- • Cyber security and IT infrastructure disruption risks(p.67)
- • Macroeconomic slowdown and Indian economy dependency(p.85)
- • Geopolitical tensions and trade policy risks(p.86)
- • Inability to obtain or renew regulatory permits and licenses(p.77)
- • Regulatory risks related to Form FC-GPR filings and RBI compliance(p.136)
- • Project execution delays and vendor performance risks for BESS project(p.149)
- • Rising global competition and consolidation pressures in telecom equipment sector(p.194)
- • Dependence on single major customer (MSEDCL) for substantial revenue(p.149)
- • Complex and variable Right of Way procedures delaying infrastructure deployment(p.211)
- • Regulatory restrictions on tower placement due to health and zoning concerns(p.211)
- • Revenue pressure from loaded sites reducing per-tenant rental income(p.215)
- • Consolidation risk from telecom operator mergers reducing tenancy demand(p.215)
- • Risk of spectrum regulation changes affecting telecom service expansion(p.206)
- • Volatility in module prices (55-60% of BESS capital cost); reliance on China/US imports exposes to FX risk(p.264)
- • Counterparty risk: weak discom finances causing payment delays; UDAY relief reversed(p.265)
- • Module degradation and quality risk; poor quality modules cause higher failure rates and warranty bankruptcies(p.265)
- • Supply-demand mismatch from solar variability; discoms may excessively curtail renewable generation(p.265)
- • Infrastructure risk: land acquisition challenges and transmission line delays in acquiring RoW(p.266)
- • Regulatory uncertainty: ALMM mandate for domestic modules (applicable from FY25) disrupts procurement(p.266)
- • PSA delays and unsigned contracts for auctioned BESS projects (15.3 GW pending as of March 2025)(p.266)
- • Financial statements of group companies unavailable for certain periods(p.50)
- • Potential conflicts of interest from group company overlap(p.365)
- • Dependence on regulatory compliance for international subsidiaries(p.363)
- • No assurance of dividend payments(p.366)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Maddisetty Venugopal Rao | Promoter | 28.04% | — |
| Padma Venugopal Maddisetty | Promoter | 28.01% | — |
| Rajiv Maddisetty | Promoter | 14.01% | — |
| Lahari Maddisetty | Promoter | 14.01% | — |
| Maddisetty Venugopal Rao | Promoter/Chairman and Managing Director | 50,033,310 shares (28.05% approximately) | — |
| Padma Venugopal Maddisetty | Promoter/Whole Time Director | 49,983,330 shares (28.02% approximately) | — |
| Rajiv Maddisetty | Promoter/Whole Time Director | 24,991,680 shares (14.01% approximately) | — |
| Lahari Maddisetty | Promoter Group | 24,991,680 shares (14.01% approximately) | — |
| Maddisetty Venugopal Rao | Promoter | 28.04% | [●] |
| Padma Venugopal Maddisetty | Promoter | 28.01% | [●] |
| Rajiv Maddisetty | Promoter | 14.01% | [●] |
| Lahari Maddisetty | Promoter | 14.01% | [●] |
| G K Tobacco Industries Private Limited | Promoter Group | 1.96% | — |
| Maddisetty Venugopal Rao | Promoter | — | — |
| Maddisetty Venugopal Rao | Promoter | 28.04% | — |
| Padma Venugopal Maddisetty | Promoter | 28.01% | — |
| Rajiv Maddisetty | Promoter | 14.01% | — |
| Lahari Maddisetty | Promoter | 14.01% | — |
| Venugopalrao Maddisetty | Promoter/Key Managerial Person | — | — |
| Maddisetty Padma | Promoter/Key Managerial Person | — | — |
| Maddisetty Venugopal | Promoter | — | — |
| Padma Venugopal Maddisetty | Promoter | — | — |
Leadership
Maddisetty Venugopal Rao · Chairman and Managing Director
P. Rajavendhan · Chief Financial Officer
Meghana M P · Company Secretary and Compliance Officer
Rajiv Maddisetty · Whole-Time Director
Padma Venugopal Maddisetty · Whole-Time Director
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.